Where do I go from here?

Milky_Mocha

Turned 40 and now seriously considering retirement planning.
Can someone please give me that link to free unbiased pensions advice?

I've requested and received online access to all my pension pots from previous employments. I've also gained online access to my state pension information.

Is there someone on here who is able to give me an idea of what they'd do if they were in my position...if I share my pension pot details? I want to retire rich haha! I need to know how much to pay into my pension pot from now on.

Also, I've been wondering...what happens to all that money if I die before I retire??

jamesd

If you die before you are 75 any pension pots are paid tax free to whichever people you nominate in an expression of wishes form sent to the pension firm. From age 75 it's added to the taxable income of the recipient whenever they choose to take it, which doesn't have to be all at once. No age restriction on when people can get this money, a newborn can. Your will doesn't play a formal role in this but the pension scheme trustees are allowed to consider it, which is most likely if you've married or had a child and updated the will but not the expression of wishes. The trustees will also normally consider any claims by financial dependents so be sure to be explicit about excluding any of those if that is something you want, as it might be for say an ex spouse.

If you are diagnosed with a medical condition giving a life expectancy of no more than twelve months you can take the money out tax free at any age.

Defined benefit pensions like final or average salary have rules that are specific to each scheme and the money could just vanish when you die. Usually there is a reduced pension for a spouse or some small lump sum. You'll need to check with each scheme.

Number75

If you have a defined benefit pension (final salary, career average related earnings) then you have a promise of payment not an actual pot of money - so if you die, mostly the pension dies with you. Except that many DB schemes included a death in service benefit (often sizeable - mine is 4x annual salary) and a dependant or spousal element. Mine will pay 50% of my annual pension to my husband, for his life (once he hits scheme retirement age, if that's after I die).

But for DC schemes (also called money purchase) it's your money so it goes according to your instructions, you nominate. It is actually held outside of your estate so doesn't attract inheritance tax! Your nominee would get it as a cash pot though - it remains a pension until they are old enough to access it.

If you have already used your DC scheme to buy an annuity, then that dies with you - unless you took an annuity with a benefit for a bereaved spouse.

Number75

Ignore my comment about the recipient not because being able to access it - I am wrong!

Milky_Mocha

Thanks for the replies.
At least I don't have to worry about losing the money and can confidently pay large amounts into my pension.

Any thoughts on that pensions advice on my pots and how much I need to pay from now on in order to retire happy?

jamesd

If you can tell us minimum, desirable and nice to have income levels and retirement ages and your current pension and other savings we should be able to offer some thoughts.

Spreadsheetman

Milky_Mocha wrote: »

Thanks for the replies.
At least I don't have to worry about losing the money and can confidently pay large amounts into my pension.

Any thoughts on that pensions advice on my pots and how much I need to pay from now on in order to retire happy?

Well, how much £££ do you need to retire happy?
At what age do you plan to retire?
How much will your existing pensions give?

It's impossible to answer a question like that without loads more information.

atush

How much in each pot, who is it with, and what is it invested in to start.

I presume you are working and paying into your employers scheme?

stoozie1

Number 75 I thought death in service spouse's pensions were usually payable from the date of death of the member, not once the spouse hits retirement age?

Milky_Mocha

OK here goes:
36,352.86 (Aviva)
35,498.80 (Barclays)
41,557.85 (Fidelity)
19,372.17 (Willis Towers Watson)
26,864.00 (Standard Life)
Total excluding state pension: 159,645
State pension 8,325

Nothing is being contributed to the above at the moment, except for state pension. I now work for my limited company hence I need to set up my own pension arrangements.

I hope to retire on £6,000 per month after taking a quarter as a tax free lump sum.

Fidelity is charging me 0.18% pa
WTW is charging nothing
I don't know yet about the others.

I hope to retire at 60.
I don't know exactly what my pots are invested in, but I didn't select any personally.
Thanks so much.

Reckless_Saving

Ignoring taking the lump sum at the start and assuming a withdrawal rate of 4%, your total pension pots excluding state pension will give you an income of £6385 per year at this point You're way off getting £6000 per month, which would need a pension pot of £1.8million (ignoring the lump sum).